Compass vs Redfin Which Is a Smarter Choice?

Compass and Redfin are two prominent real estate companies that operate in the competitive and ever-evolving housing market. Compass, known for its focus on luxury real estate, has seen significant growth and market expansion since its inception. On the other hand, Redfin has established itself as a disruptive force in the industry through its innovative technology and customer-centric approach. Both companies offer unique opportunities for investment, but their differing business models and strategies make for an interesting comparison in the stock market.

Compass or Redfin?

When comparing Compass and Redfin, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Compass and Redfin.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Compass has a dividend yield of -%, while Redfin has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, Redfin reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Compass P/E ratio at -17.41 and Redfin's P/E ratio at -7.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.04 while Redfin's P/B ratio is -18.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while Redfin's is 0.52%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Redfin's ROE at 1475.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.59 for Compass and $9.16 for Redfin. Over the past year, Compass's prices ranged from $1.88 to $7.01, with a yearly change of 272.87%. Redfin's prices fluctuated between $5.10 and $15.29, with a yearly change of 199.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.